Contributions and/or Donations to a Corporation Organized for Religious Purposes are Not Deductible in Full for Income Tax Purposes

June 5, 1987 BIR RULING NO. 156-87 30 (h) 149-84 156-87 Gentlemen : In reply to your letter dated April 27, 1987, please be informed that as long as there is no change in the purposes for which you have been organized i.e., you are organized and operated exclusively for religious purposes, your exemption from the payment of income tax and the filing of the corresponding income tax return under Section 27(e) of the Tax Code which was granted by this Office on October 29, 1979 still holds. Hence, it is not required that said exemption be renewed. It is, however, required that you continue filing the annual information return on or before April 15 of each year. Moreover, since you are a corporation organized for religious purposes, contributions and/or donations to you are not deductible in full for income tax purposes. Under Section 30(h) of the Tax Code, contributions or gifts actually paid or made to religious corporations like you are deductible for income tax purposes but only to the extent of 6% in the case of an individual donor, and 3% in the case of a corporate donor, of the donors taxable net income as computed without the benefit of said deduction. To effect the deductibility of the contributions from the gross income of your contributors, you should issue to them official receipts specifying the name of the contributor, the date, the gift was made and the amount of the gift. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner